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Smoky Mountain Corporation makes two types of hiking bootsXtreme and the Pathfinder. Data concerning these two product lines appear below: Selling price per unit Direct
Smoky Mountain Corporation makes two types of hiking bootsXtreme and the Pathfinder. Data concerning these two product lines appear below: Selling price per unit Direct materials per unit Direct labor per unit Direct labor-hours per unit Estimated annual production and sales Xtreme $ 115.00 $ 65.40 $ 16.00 1.6 DLHs 32,000 units Pathfinder $ 85.00 $ 53.00 $10.00 1.0 DLHs 60,000 units The company has a traditional costing system in which manufacturing overhead is applied to units based on direct laborhours. Data concerning manufacturing overhead and direct labor hours for the upcoming year appear below: Estimated total manufacturing overhead Estimated total direct labor-hours $1,779,200 111,200 DLHs Required: 1. Compute the product margins for the Xtreme and the Pathfinder products under the company's traditional costing system. (Do not round your intermediate calculations.) Xtreme Total Pathfinder Product margins a s 8 8
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